Nutralised Foreigners with a permanent visa or a temporary visa and a local work
contract or who live in Brazil for at least 183 days in the year are considered
as residents.

Resident taxpayers are taxed on their worldwide income, unless otherwise agreed
in a tax treaty. Non-residents of a non-treaty country are liable for a flat
rate 25% tax on their wages earned in Brazil and 15% on their other income.

What are the deductions and Tax Credit allowed in Brazil

The following items are deductible while calculating monthly tax liability

- Social security and pension contributions to Government entities

- Alimony and pension amounts decreed by court

- Dependent allowance (BRL 189.59 per capita)

- Tuition expenses.

Some deductions, such as those for dependants, alimony, and Brazilian official
social security contributions are allowed on monthly basis

Capital Gain Tax Rate in Brazil for 2018-2019

15% is the flat rate of Capital gain tax. Transactions below BRL 35,000 is
exempt in each month.

- Gift tax upto 8% is applicable in case of transfer of estate by donation or
inheritance

- 4% tax rate in Sao Paulo and Rio de Janeiro

Taxable Income Slab

Tax Rate

0 to $ 87,000

32.5c per $1

$87,001 to $180,000

$28,275 + 37c per $1 over $87,000

$180,001 and above

$62,685 + 45c per $1 over $180,000

Medicare Levy is not applicable to Foreign residents

Working Holiday Makers Tax Rates

Working holiday makers are liable to pay tax regardless of residency for tax
purposes. The following visa subclass classifies working holiday maker.